Table Of ContentlOVERNMENT SHUTDOWN WHAT'S ESSENTIAL?
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HEARINGS
BEFORE THE
SUBCOMMITTEE OX
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SER\n:CE
OF THE
COMMITTEE ON GOVERNMENT
REFORM AND OVERSIGHT
HOUSE OF REPRESENTATIVES
ONE HUNDRED FOURTH CONGRESS
FIRST SESSION
DECEMBER 6, AND 14, 1995
Printed for the use of the Committee on Government Reform and Oversight
GOVERNMENT SHUTDOWN WHAT'S ESSENTIAL?
I:
HEARINGS
BEFORE THE
SUBCOMMITTEE ON
CIVIL SERVICE
OF THE
COMMITTEE ON GOVERNMENT
REFORM AND OVERSIGHT
HOUSE OP REPRESENTATIVES
ONE HUNDRED FOURTH CONGRESS
FIRST SESSION
DECEMBER 6, AND 14, 1995
Printed for the use of the Committee on Government Reform and Oversight
U.S. GOVERNMENT PRINTING OFFICE
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:
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ISBN 0-16-055139-0
COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT
WILLIAM F. CLINGER, Jr., Pennsylvania, Chairman
BENJAMIN A. OILMAN, New York CARDISS COLLINS, IlUnois
DAN BURTON, Indiana HENRY A. WAXMAN, CaUfomia
J. DENNIS HASTERT, Illinois TOM LANTOS, California
CONSTANCE A. MORELLA, Maryland ROBERT E. WISE, Jr., West Virginia
CHRISTOPHER SHAYS, Connecticut MAJOR R. OWENS, New York
STEVEN SCHIFF, New Mexico EDOLPHUS TOWNS, New York
ILEANA ROS-LEHTINEN, Florida JOHN M. SPRATT, Jr., South CaroUna
WILLIAM H. ZELIFF, Jr., New Hampshire LOUISE MCINTOSH SLAUGHTER, New
JOHN M. McHUGH, New York York
STEPHEN HORN, CaUfomia PAUL E. KANJORSKI, Pennsylvania
JOHN L. MICA, Florida GARY A. CONDIT, CaUfomia
PETER BLUTE, Massachusetts COLLIN C. PETERSON, Minnesota
THOMAS M. DAVIS, Virginia KAREN L. THURMAN, Florida
DAVID M. Mcintosh, Indiana CAROLYN B. MALONEY, New York
JON D. FOX, Pennsylvania THOMAS M. BARRETT, Wisconsin
RANDY TATE, Washington GENE TAYLOR, Mississippi
DICK CHRYSLER, Michigan BARBARA-ROSE COLLINS, Michigan
GIL GUTKNECHT, Minnesota ELEANOR HOLMES NORTON, District of
MARK E. SOUDER. Indiana Columbia
WILLIAM J. MARTINI, New Jersey JAMES P. MORAN, Virginia
JOE SCARBOROUGH, Florida GENE GREEN, Texas
JOHN B. SHADEGG, Arizona CARRIE P. MEEK, Florida
MICHAEL PATRICK FLANAGAN, IlUnois CHAKA FATTAH, Pennsylvania
CHARLES F. BASS, New Hampshire BILL BREWSTER, Oklahoma
STEVEN C. LaTOURETTE, Ohio TIM HOLDEN, Pennsylvania
MARSHALL "MARK" SANFORD, South
Carolina BERNARD SANDERS, Vermont
ROBERT L. EHRLICH, Jr., Maryland (Independent)
James L. Clarke, StaffDirector
Kevin Sabo, General Counsel
Judith McCoy, ChiefClerk
Bud Myers, Minority StaffDirector
Subcommittee on Civil Service
JOHN L. MICA, Florida, Chairman
CHARLES F. BASS, New Hampshire JAMES P. MORAN, Virginia
BENJAMIN A. OILMAN, New York BERNARD SANDERS, Vermont (Ind.)
DAN BURTON, Indiana TIM HOLDEN, Pennsylvania
CONSTANCE A. MORELLA, Maryland
Ex Officio
WILLIAM F. CLINGER. Jr., Pennsylvania CARDISS COLLINS, lUinois
George Nesterczuk, StaffDirector
Ned Lynch, Professional StaffMember
Caroline Fiel, Clerk
Cedric Hendricks, Minority Professional Staff
(II)
CONTENTS
Hearing held on:
December6, 1995 1
December 14, 1995 491
Statement of:
Bachus, Hon. Spencer, a Representative in Congress from the State of
Alabama; Hon. Peter Hoekstra, a Representative in Congress from
the State ofMichigan; Hon. Ken Calvert, a Representative in Congress
from the State ofCalifornia; and Hon. J.D. Hayworth, a Representative
in Congress from the State ofArizona 509
Broadnax, Walter, Deputy Secretary, Department of Health and Human
Services; Dwight Robinson, acting Deputy Secretary, Department of
Housing and Urban Development; Thomas P. Glynn, Deputy Secretary,
Department of Labor; George Munoz, Assistant Secretary for Manage-
ment and ChiefFinancial Officer, Department ofthe Treasury; Eugene
A. Brickhouse, Assistant Secretary for Human Resources and Adminis-
tration, Department ofVeterans Affairs; and Shirley Chater, Commis-
sioner, Social SecurityAdministration 22
Hoyer, Hon. Steny, a Representative in Congress from the State ofMary-
land; Hon. George Gekas, a Representative in Congress from the State
of Pennsylvania; Hon. Glen Browder, a Representative in Congress
from the State ofAlabama; Hon. Joe Barton, a Representative in Con-
gress from the State ofTexas; Hon. Karen McCarthy, a Representative
in Congress from the State ofMissouri; and Hon. Sonny Bono, a Rep-
resentative in Congress from the State ofCalifornia 580
Koskinen, John A., Deputy Director for Management, Office of Manage-
ment and Budget; Christopher H. Schroeder, Deputy Assistant Attor-
ney General, Office of Legal Policy, Department ofJustice; and Allan
D. Heuerman, Associate Director for Human Resources, Office ofPer-
sonnel Management 219
Letters, statements, etc., submitted forthe record by:
Bass, Hon. Charles F., a Representative in Congress from the State
ofNew Hampshire, prepared statement of 15
Bachus, Hon. Spencer, a Representative in Congress from the State of
Alabama, prepared statement of 512
Barton, Hon. Joe, a Representative in Congreess from the State ofTexas,
prepared statementof 596
Boehner, Hon. John A., a Representative in Congress from the State
ofOhio, prepared statement of 505
Bono, Hon. Sonny, a Representative in Congress from the State ofCali-
fornia, prepared statement of 605
Brickhouse, Eugene A., Assistant Secretary for Human Resources and
Administration, Department ofVeterans Affairs:
Information concerninglawn care workers 210
Prepared statementof 68
Broadnax, Walter, Deputy Secretary, Department ofHealth and Human
Services, prepared statement of 25
Browder, Hon. Glen, a Representative in Congress from the State of
Alabama, prepared statement of 592
Calvert, Hon. Ken, a Representative in Congress from the State ofCali-
fornia, prepared statement of 522
Chater, Shirley, Commissioner, Social Security Administration, prepared
statement of 186
(III)
rv
Page
—
Letters, statements, etc., submitted forthe record by Continued
dinger, Hon. William F., Jr., a Representative in Congress from the
State of Pennsylvania, letter to Mr. Panetta, regarding management
functions of0MB, dated June 21, 1994 11
Collins, Hon. Cardiss, a Representative in Congress from the State of
Illinois, prepared statementof 20
Ensign, Hon. John, a Representative in Congress from the State of Ne-
vada, prepared statementof 508
Gekas, Hon. George, a Representative in Congress from the State of
Pennsylvania, prepared statementof 588
Glynn, Thomas P., Deputy Secretary, Department of Labor, prepared
statement of 36
Hayworth, Hon. J.D., a Representative in Congress from the State of
Arizona, prepared statement of 556
Hoekstra, Hon. Peter, a Representative in Congress from the State of
Michigan:
Letters concerning Department of Labor's activities during recent
lapse in funding 567
Prepared statement of 551
Horn, Hon. Stephen, a Representative in Congress from the State of
California:
Information concerningexcepted and furloughed employees 209
Prepared statementof 17
Hoyer, Hon. Steny, a Representative in Congress from the State ofMary-
land, prepared statementof 583
Heuerman, Allan D., Associate Director for Human Resources, Office
ofPersonnel Management 244
Koskinen, John A., Deputy Director for Management, Office of Manage-
ment and Budget, prepared statementof 225
Lazio, Hon. Rick A., a Representative in Congress from the State of
NewYork, prepared statementof 500
McCarthy, Hon. Karen, a Representative in Congress from the State
ofMissouri, prepared statementof 601
Mica, Hon. John L., a Representative in Congress from the State of
Florida:
Information concerningovertime 210
Open letterto Federal employees 493
Prepared statementof 495
Moran, Hon. James P., a Representative in Congress from the State
ofVirginia, prepared statement of 6
Morella, Hon. Constance A., a Representative in Congress from the State
ofMaryland, prepared statementof 560
Munoz, George, Assistant Secretary for Management and ChiefFinancial
Officer, Department oftheTreasury, prepared statementof 47
Schroeder, Christopher H., Deputy Assistant Attorney General, Office
ofLegal Policy, DepartmentofJustice, prepared statementof 238
Thompson, Hon. Bennie G., a Representative in Congress from the State
ofMississippi, prepared statementof 502
GOVERNMENT SHUTDOWN WHAT'S
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ESSENTIAL?
WEDNESDAY, DECEMBER 6, 1995
House of Representatives,
Subcommittee on Civil Service,
Committee on Government Reform and Oversight,
Washington, DC.
The subcommittee met, pursuant to notice, at 9:10 a.m., in room
2154, Rayburn House Office Building, Hon. John L. Mica (chair-
man ofthe subcommittee) presiding.
Present: Representatives Mica, Morella, Bass, and Moran.
Ex officio present: Representative CUnger.
Also present: Representative Horn.
Staff present: George Nesterczuk, staff director; Garry Ewing,
counsel; Ned Lynch, professional staffmember; Caroline Fiel, clerk;
Cedric Hendricks, minority professional staff; and Elisabeth Camp-
bell, minority staff.
Mr. Mica. Good morning. I would like to call this meeting ofthe
House Subcommittee on Civil Service to order.
The subject of today's hearing is government shutdown and what
is essential? I will begin this hearing by welcoming our witnesses,
guests and fellow colleagues. I have an opening statement, then we
will hear from some ofthe other Members.
Today the subcommittee will be reviewing the government shut-
down, both as it affected our Federal work force recently and what
might happen in the event of a future government lapse in appro-
priations. Any review of the government shutdown must center on
which activities ofthe Federal Government are essential and which
are nonessential.
The Constitution of the United States is clear in Article I, Sec-
tion 9, that "No money shall be drawn from the treasury but in
consequence of an appropriation made by law." Despite this con-
stitutional restriction, we recognize that certain functions of our
government are, in fact, essential, and its work force must continue
to operate even when appropriations do lapse.
By tradition, it is the President, together with 0MB and the indi-
vidual agencies, that have been allowed to decide which functions
in agencies are essential and which, in fact, are to be shut down.
Part of the reason that I, and other new Members, sought election
to Congress was really to come here with the intention ofexploring
these issues in a broader context. In our attempt to balance the
Federal budget, we deal with this issue directly as we decide what,
in fact, are essential national functions and activities. That, of
course, is part of a larger question as we consider the proper role
(1)
of our Federal Government, including alternatives such as
privatizing, downsizing, or shifting responsibilities to State and
local authorities.
No one can deny the fact that taxpayers and the average citizen
outside the Beltway must ask some very serious questions when
large segments ofour Federal Government close down and they see
no appreciable differences in their lives. Inside the Beltway, many
people spoke of assessing blame for the government shutdown of
nonessential services.
Outside the Beltway, many citizens and taxpayers applauded
closing down nonessential government activities. Others outside
the Beltway, who have grown dependent on Federal Government
benefits and services, were, in fact, appalled and dismayed, and
had their lives severely disrupted by the shutdown.
In this hearing today, I hope we can review, first, what took
place in the recent shutdown; and, second, what plans are under
consideration for any future government closure. It is important to
note that the shutdown itself has not been a new idea to this ad-
ministration. I believe it was part of a calculated strategy by the
administration to close down the government this year.
Planning for this supposedly spontaneous shutdown began as
early as July of this year. In September, agencies were required to
submit shutdown plans to 0MB. This was in marked contrast to
the first shutdown, which occurred under President Reagan in
1981, when the first 0MB guidance to agencies was issued less
than a week before employees were sent home.
In spite of the current administration's advanced planning, it is
unfortunate that the execution of the shutdown was, in many in-
stances, disorganized and illogical, at best, and oftentimes chaotic
experience. Let me cite a couple of examples here, and we have
people that will speak to this as witnesses.
The Department of Housing and Urban Development [HUD], ini-
tially released all but 136 of nearly 12,000 employees. As a result,
some housing programs were shut down, even though funds were
available for many major housing programs. Even with a 90 per-
cent retention rate at the Department of Veterans Affairs, the ad-
ministration announced that the processing of new applications for
some major veterans benefits programs would be suspended. With-
in a week of the shutdown, the White House announced the recall
ofmore than 1,700 DVA employees.
The Department of Education, as another example, furloughed
86 percent of its work force, while the Bureau of Alcohol, Tobacco,
and Firearms found it necessary to retain, so-called "essential," 15
of 23 public affairs officers. The Social Security Administration fur-
loughed 90 percent of its work force. Retirement claims processing
ceased. At the same time, retirement claims for civil service retir-
ees, at the Office of Personnel Management, were being processed
at 100 percent capacity and activity rate.
Three days into the furlough, the President initiated a recall of
more than 50,000 Social Security personnel, raising questions
about whether they should have been furloughed in the first place.
Furthermore, in the middle of the shutdown, the President de-
clared some activities nonessential on Monday, when on Friday
these same functions were suddenly termed "essential."
It's important that we look at the discrepancies and review the
agencies, and see what is, in fact, a priority activity. We must also
examine what activities are more costly to close down than to con-
tinue. Finally, we must consider Federal employees whose lives are
severely disrupted by this disorderly process.
This may have been a well-planned shutdown, but I fmd some
of the results very confusing. We heard a lot of rhetoric, and saw
a lot of posturing and grandstanding from the administration. As
cold reality set in, we saw backpedaling and the recall of employ-
ees. And what about the question, what is essential? The adminis-
tration seems not to have defined this consistently among its var-
ious agencies.
Was this poor management or premeditation? Should Congress
have established better criteria or better defined guidelines? The
priorities seem evident to me. First and foremost, we have a re-
sponsibility to ensure national security. We have a duty to provide
for the effective enforcement of our laws. We must take adequate
measures to guarantee the public safety, health, and welfare. Next,
we must ensure that those who cannot sustain themselves are pro-
vided for adequately.
Most of these functions were deemed essential last month. Most
were carried out with only minor interruptions. But it is important
that we look at the discrepancies in the implementation of the ad-
ministration's first shutdown, ifonly to make certain that we avoid
these problems in the future.
We face the prospect of another shutdown within just a matter
of 10 days affecting several of the agencies represented here today.
We remain committed to approving legislation that will continue
operations, but if another veto does shut down these agencies, we
hope this hearing will result in a more consistent criteria for clo-
sures and more effective operations ofcontinuing activities.
To explore these issues, we have assembled a panel of senior offi-
cials who have responsibility for the management ofmajor agencies
that have implemented the shutdown in a variety ofways.
They include Dr. Walter Broadnax, the Deputy Secretary of the
Department of Health and Human Services; Mr. Dwight Robinson,
Acting Deputy Secretary of the Department of Housing and Urban
Development; Mr. Thomas Glynn, Deputy Secretary of the Depart-
ment ofLabor; Mr. George Muiioz, Assistant Secretary for Manage-
ment and Chief Financial Officer of the Department of the Treas-
ury; Mr. Eugene Brickhouse, Assistant Secretary for Human Re-
sources and Administration of the Department of Veterans Affairs;
and Ms. Shirley Chater, Commissioner of the Social Security Ad-
ministration.
Our second panel includes Mr. John Koskinen, Deputy Director
of the Office of Management and Budget; Mr. Christopher Schroe-
der. Deputy Assistant Attorney General in the Office of Legal Pol-
icy at the Department ofJustice; and Mr. Allan Heuerman, Associ-
ate Director for Human Resource Systems Service in the Office of
Personnel Management.
Those are my opening remarks and comments. I will yield now
to the ranking member of our panel, the distinguished gentleman
from Virginia, Mr. Moran.
Mr. MORAN. Thank you, Mr. Chairman. I am glad you are having
this hearing on the government shutdown that never should have
happened. In my view, it was clearly the Congress' fault. We did
not get our appropriations bills passed in time. We had a year to
do it, and we didn't do it. There was only 1, in my recollection, out
of 13 bills that was enacted.
There were a lot of complaints over the fact that the President
vetoed the legislative branch appropriations bill, but thank God he
did. That would have been the worst thing to have had the Con-
gress paid and none of the rest of the government paid because we
took care of our own salaries and operation expenses before the
rest ofthe government. So I'm glad he vetoed that.
But the fact is that we didn't get the appropriations bills passed.
That's why we had the government shutdown. And then we delib-
erately sent a continuing resolution to the President, calculated to
draw a veto. Now, I grant you that the Speaker tried to lend some
insight into why that happened by going into the fact that he didn't
get a window seat on the plane to the Middle East, or he went out
the wrong door, or something.
I don't think it was so much the personal snubbing that he per-
ceived occurred as the fact that the legislative branch did not act
in an efficient and effective way. The reconciliation bill is far less
important than getting these appropriations bills signed, and that,
in the future, should be our highest priority.
But 40 percent of the government did not operate, as a result,
for 4 days. And I think that's something we should be ashamed of.
We also ought to be embarrassed at the fact that we spent $700
million of taxpayers' money and got no work out of it, no return
from the Federal employees who were furloughed, all of whom
wanted to be at work performing their jobs; none of them wanted
to be getting paid for doing nothing, but 800,000 were sent home.
I think that we need to clarify what is essential an—d nonessential
in the first place. The definition that suggests that and, in fact,
I have the directive here, "essential employees are only those
where, ifthey were unable to perform their jobs, the failure to per-
form those functions would result in an imminent threat to the
safety ofhuman life or the protection ofproperty."
There's an inconsistent application of that criteria, but the func-
tioning ofthe Federal Government goes far beyond that. Obviously,
national park officials, for example, are not going to be involved in
the safety ofhuman life or protection of property, for the most part,
but they are important for the proper functioning of the Federal
Government.
The peopl—e who issue visas. We had any number of p—eople in my
jurisdiction I'm sure they are throughout the country who need-
ed visas, who needed to be able to travel, but couldn't get them.
One woman's family member was dying and she couldn't get there
because the people who would have issued her a visa were not able
to get to work. The Social Security applications, the applications for
veterans benefits were not processed when they were supposed to
be, when people were eligible. The fact is that millions of dollars
was wasted every day that should have been collected and wasn't.
I know we're going to find a number ofdiscrepancies between the
various Federal agencies in the way that they interpreted the
